Archer Aviation is a California-based company founded in 2018, developing all-electric vertical take-off and landing aircrafts (eVTOLs). The company was listed on the New York Stock Exchange in 2021 and is in the final stages of certification with the FAA.
As an entrepreneur, what was the gap in the market you identified that led you to this venture of founding Archer Aviation in 2018?
The industry was stuck in R&D, but thanks to advancements pushed by Tesla in electric vehicles, electric power systems have advanced dramatically, to the point where lithium-ion batteries have enough energy density and power density to power an airplane. Moving this technology to the air offers amazing benefits, primarily around safety and noise, and significantly reduces costs.
I saw an opportunity to commercialize the technology so focused on building the next great aviation company, taking the product out of the R&D phase to make aviation more sustainable. This year is particularly interesting because many companies have caught on, which should benefit the whole market.
Can you tell us about your aircraft fleet, particularly the Midnight aircraft?
Our number one goal is to build a safe aircraft that we can enter into the market as soon as possible. The Midnight vehicle is designed to take off and land vertically and then fly forward on a wing like an airplane. This allows it to take off and land near points of interest, eliminating the need to drive out to an airport. Unlike helicopters, our vehicles have a much lower noise profile and higher safety profiles, allowing us to put more in the air and impact more people.
The vehicles are designed to travel up to 100 miles at 150 miles per hour including reserves and in optimal flying conditions, ultimately saving people time and providing a convenient, safe way to travel. Typical missions will be shorter, around 25 miles. For example, the 17-mile trip from Manhattan to JFK can take 90 minutes by car but only 5 minutes by air. These shorter, common trips are the core target, starting with airport to city center routes.
Noise pollution is a growing concern in cities and urban environments. How much quieter are Archer Aviation’s vehicles?
Our vehicles are designed to be up to a hundred times quieter than a traditional helicopter. The noise profile is different; instead of the low-frequency "wop-wop" sound of a helicopter, our vehicles produce a whooshing air sound. When flying forward, they get lift from the wing, unlike helicopters that hover, creating a different noise profile. Additionally, slowing down the tips of the blades reduces noise. This noise reduction is not unique to Archer but to the entire category of electric aircraft.
Where do you see the most potential for expansion and partnership in 2024?
Nobody enjoys sitting in traffic. If a 90-minute car journey could be reduced to 5-15 minutes, it would be much more enjoyable. Ride-sharing is probably the most interesting concept because it can make this a mass form of transportation. We want to reach the masses and ensure high safety records.
Domestically, we partner with United Airlines, starting around their major hubs like New York (Newark Liberty International), LA (LAX), and San Francisco (SFO). Internationally, the GCC, especially the UAE, has been very interesting. One of our early investors was Mubadala, Abu Dhabi's sovereign wealth fund, and we've been working closely to create a network in Abu Dhabi, including a corridor between Abu Dhabi and Dubai.
You have stated that ‘India will be the biggest market in the world for Archer Aviation’. Is that based on current demand or potential?
It is due to its potential. India has a large population, congested cities, and underdeveloped infrastructure, providing a significant business opportunity. We've partnered with Rahul Bhatia, the founder of InterGlobe, which started Indigo, the largest airline in India. He's been a wonderful partner in studying the market and building a launch plan there.
How do opportunities in emerging markets compare to more established urban environments like London?
Both have benefits and drawbacks. Established cities like New York or London have existing infrastructure but limited space for new infrastructure. For example, New York City has three existing helipads that only need electrification. Parking garages with unused roof space could also be interesting. Less developed or less crowded cities have more space for new infrastructure. We study how people move using anonymized cell phone data to identify points of interest and set up infrastructure. Then, we partner and build networks to launch.
As technological advancements make huge strides forward, how are you mitigating safety risks in your development of electric vehicles?
Electric vehicles have significant safety benefits over traditional helicopters. Electric engines can be scaled down efficiently, allowing multiple engines to reduce single points of failure. These vehicles aim to have zero single points of failure, unlike helicopters, which might have 200-300. New technologies such as autonomous systems and envelope protection help prevent stalling. Strict standards on pilot training ensure this becomes one of the safest forms of travel.
How is investor sentiment for electric vehicles in 2024?
Investor sentiment is a mix of excitement for the product's potential impact and questions about when it will happen. Much of this depends on the regulatory process. Our job is to help investors understand this process and get comfortable with the go-to-market dates. We aim to get to market as soon as next year, starting small and scaling up carefully.
The main challenge is getting through the certification process with regulators to prove and validate the safety of our aircraft. We also focus on setting up markets and scaling operations. The FAA has been very supportive, helping the US maintain its leadership in aviation. This support has also sparked interest from regulators around the world. The issue is non-partisan, appealing universally as it can create many jobs, from pilots to maintenance and repair, and manufacturing.
